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Billionaire Mark Cuban: Cryptocurrency is like the beginning of the Internet

Mark Cuban, who invests heavily in cryptocurrencies, thinks this is a period of lull and purification similar to the Internet in the early 2000s.

Mark Cuban is one of the “sharks” sitting in the US Shark Tank hot seat from 2011 to present. He is also the owner of the famous basketball team Dallas Mavericks, owning a fortune of more than $ 4.7 billion, according to Forbes.

Recently, when the market digital currency Entering a period of prolonged price decline, billionaire Mark Cuban views the situation as the dotcom bubble of the early 2000s. In the late 1990s, speculation drove the valuations of companies into action. Internet-based services skyrocketed, sending the Nasdaq Composite stock market index up 400 percent in five years before crashing between 2001-2002.

“Cryptocurrency is going through an internet lull,” Cuban said.

Mark Cuban speaks at an event in Texas (USA), March 2022.  Photo: Reuters

Mark Cuban speaks at an event in Texas (USA), March 2022. Image: Reuters

According to him, after the initial proliferation of “interesting apps” and NFT, cryptocurrencies are entering the “imitation phase” when there are too many companies that do not bring new benefits to the market. But Cuban predicts, the blockchain emerging after this period will use “smart contracts to improve business productivity and profitability”.

Smart contracts are digital agreements encrypted and stored on the blockchain that provide decentralized finance (DeFi), applications, and NFTs. This protocol will automate the contract without outside intervention, making it convenient for users and ensuring very high accuracy and transparency because there is no interference or reversal.

“Blockchains that copy what everyone else has, will fail. We don’t need NFT or DeFi on every chain,” the billionaire emphasized.

As for whether more cryptocurrencies will experience a further lull, Cuban is uncertain. “I don’t know this well,” he said.

This is not the first time Mark Cuban has compared cryptocurrencies to the history of the web. Early last year, he said the development of blockchain technology reminded him of the “early days of the Internet” and that current blockchain companies are similar to Internet pioneers.

“It took time before the Internet became available and cheap enough that streaming and true wireless connectivity was possible. We took 20 years to enter the Internet age and now there’s only left. 10-12 years from now with crypto,” he said last year.

Billionaire Cuban is also a crypto investor with a portfolio that includes many digital currencies, NFT. In addition, he also poured money into several blockchain companies.

Last week, the cryptocurrency market experienced its longest losing streak since March 2020. In there, Bitcoin At one point, the price dropped to about $25,402 – the lowest since December 2020. Ether market price was also swept away by 20% in just one day, sometimes down to $ 1,883 – the lowest since July 2021.

CoinDesk Explained, cryptocurrencies are affected by two pressures. On the one hand, fear that inflation will cause central banks to tighten monetary policy, dampens the desire to hold assets considered high risk. On the other hand, the fact that TerraUSD – a stablecoin (stable coin) whose value is pegged to one USD, suddenly lost this market value and dropped to less than one USD, created a “ripple” effect on the assets. digital.

However, Bitcoin quickly regains the $30,000 mark on May 13th. CoinDesk explained that this was only a short-term rally as the market recorded a sell-off. Accordingly, the resistance of the world’s largest cryptocurrency will be at $33,000-35,000.

Xiao Gu (according to CNBC, CoinDesk)

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